EXCHANGE PROBLEM

Dominion, Volume 27, Issue 59, 2 December 1933, Page 7

EXCHANGE PROBLEM

United States Establishes Equalisation Fund

SIMILAR TO BRITAIN’S

By Telegraph.—Press Assn.—Copyright. (Received December 1, 7.30 p.m.). London, December 1. The fact that the United States Government has established an exchange equalisation fund on the lines of the British fund was revealed by the American Ambassador to Britain. Mr. H. Bingham, when speaking at a Thanksgiving Day dinner to-day. “I believe there is sadness ahead for those selling the United States short” said Mr. Bingham when emphasising his confidence in tiie success of the Administration’s recovery movement. He condemned the phrase "india-rubber dollar.” and added that he did not expect uncontrolled inflation. Recently the dollar bad been devaluated to the same extent as the pound in 1931 and he hoped and believed that this policy would similarly benefit the United States. Mr. Bingham also revealed that only six-inch guns were being mounted in the new American cruisers, although they could carry eight-inch guns. SILVER ISSUE Borah Re-enters Controversy CHALLENGE TO WARBURG Washington, November 30. Senator Borah re-entered the monetary controversy to-day and sharply answered Mr. Warburg’s suggestion tliat the United States might co-oper-ate with Britain in reinstituting a modernised revised gold standard. Senator Borah pointed out that British and American world trade interests were so conflicting that “the possibilty, to say nothing of the desirability, of such a conjunctive action with Britain is so remote at this time, as I see it, that it removes any proposal based upon that fact beyond the realm of practical consideration and discussion.”

Mr. Borah chided Mr. Warburg for his failure to mention silver as a possible monetary base, and suggested that the Reconstruction Finance Corporation “purchase silver as it does gold, until it brings the price to 75 cents an ounce. We can then have a dollar consisting of an ounce of silver and 25 cents’ worth of gold at the prevailing price.” .Senator Borah’s statements have greatly encouraged the silver advocates in Congress to-day, and they are now confident they can pass some sort of legislation to remonetise silver.